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December 25, 2019 08:30 pm

Behind Samsung's $116 Billion Bid for Chip Supremacy

Technology giants are increasingly designing their own semiconductors to optimize everything from artificial intelligence tasks to server performance and mobile battery life. Google has the Tensor Processing Unit, Apple has the A13 Bionic and Amazon.com has the Graviton2. What the titans all lack, however, is a factory to build the new chips they are dreaming up. Enter Samsung Electronics, which is planning a decade-long, $116 billion push for their business. From a report: The South Korean company is investing heavily in the next step in miniaturizing semiconductors, a process called extreme ultraviolet lithography (EUV). It's by far the priciest manufacturing upgrade Samsung has ever attempted, a risky bid to move beyond its established business of cranking out commoditized silicon and to leapfrog the incumbent leaders in the $250 billion foundry and logic-chip industry. "A new market is opening up," Yoon Jong Shik, executive vice president of Samsung's foundry business, said at a forum recently held in Seoul. "Companies like Amazon, Google and Alibaba, which lack experience in silicon design, are seeking to make chips with their own concept ideas in order to boost their services. I think this would bring a significant breakthrough for our non-memory chip business." Samsung is a relative underdog in this growing field. The foundry business -- as the manufacturing of chips for companies like Google and Qualcomm Inc. is known -- is dominated by Taiwan Semiconductor Manufacturing Co. with more than half the market, according to TrendForce data that puts Samsung at 18%. TSMC also took over Apple's A-series processor manufacturing from Samsung, which was the original production partner. Samsung plans to spend about $10 billion per year on equipment, research and development over the next decade, but TSMC is even more ambitious with capital expenditure of around $14 billion for this year and next.

Read more of this story at Slashdot.


Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/cJR2Id587OY/behind-samsungs-116-billion-bid-for-chip-supremacy

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